Help to Buy ISA transfer to
Lifetime ISA explained

Applications for Help to Buy ISAs end on 30th November 2019. If you wish to transfer your Help to Buy ISA into a OneFamily Lifetime ISA, you need to complete the following three steps:

1

Apply online

Complete our Lifetime ISA online application form. During the application you'll be asked if you would like to transfer a Help to Buy ISA, select yes.

2

Submit your transfer form

Following completion of your Lifetime ISA application, download and fill out the transfer form and send this back to us.

3

Voila! We'll do the rest

Once your transfer form has been recieved we'll contact your Help to Buy ISA provider to complete the transfer and finalise your application by opening your Lifetime ISA.

Things to consider before transferring:

  • Our Lifetime ISA invests in stocks and shares, we do not offer a cash Lifetime ISA. Help to buy ISAs are cash, not stocks and shares investments.
  • You can take out a Help to Buy ISA any age from age 16, however the Lifetime ISA is only available to those aged between 18-39. So if you’re looking to transfer but are aged 16 or 17, or indeed over the age of 39 you won’t be able to.
  • Existing Help to Buy ISA customers can transfer funds up to £4,000 into a Lifetime ISA in the current tax year, subject to existing contributions.
  • You need to have held your Lifetime ISA for a year before you can use it to purchase your first home penalty free. So if you are planning to buy your first home within a year, transferring from a Help to Buy ISA to a Lifetime ISA will impose an additional restriction on you.
  • If you choose to invest in a stocks and shares Lifetime ISA, please note that investments of this nature don't offer the same security as cash. Investments in stocks and shares can fall as well as rise so this may mean you could get back less than you paid in.
  • A withdrawal to purchase your first home before the Lifetime ISA has been open for 12 months will result in a 25% government withdrawal charge.

Please note: As with all stocks and shares investments your capital is at risk. Also, if you have savings this could affect your entitlement to means tested benefits. If using a Lifetime ISA to save towards your retirement, in place of a pension, you could lose out on valuable employer contributions.

What's the difference between a Help to Buy and a Lifetime ISA?

What's the difference between a Help to Buy and a Lifetime ISA?

The Help to Buy ISA and Lifetime ISA are types of individual savings accounts introduced by the government to help first-time buyers get on the property ladder. You can only use either a Help to Buy ISA or a Lifetime ISA for first time house purchase, not both.

The Help to Buy ISA was launched in December 2015 and the Lifetime ISA launched in April 2017. The Help to Buy ISA is being withdrawn, with new account openings only available until 30th November 2019. However, you can pay into a Help to Buy ISA until 2029.

The Lifetime ISA also has the added feature of being able to be used for retirement saving as well.

Lifetime ISA

  • Can be opened by UK residents aged 18-39.
  • Maximum contribution of £4,000 a year based on the current tax year.
  • Contributions can be made in regular payments or lump sums.
  • Bonus applied to your Lifetime ISA account on a monthly basis, based on the amount paid in.
  • The bonus can be used at exchange or completion for your first home.
  • Lifetime ISAs can be invested in cash or stocks and shares (OneFamily only offers a stocks and shares Lifetime ISA). 
  • First home purchase price of £450,000 or less.
  • Lifetime ISA must be opened for 12 months before you can withdraw money for your first home penalty free.
  • Can be used to save for a first home, for retirement or for one then the other.
  • 25% withdrawal charge for withdrawals made before age 60 and not for a first home purchase. 

Help to Buy ISA

  • Can be opened by UK residents over the age of 16 wanting to save for their first home
  • Optional monthly payments of up to £200 can be made, while a lump sum deposit of up to £1,200 can be made when opening the account. 
  • Once it is certain the transaction will go ahead, your solicitor/conveyancer will claim the bonus between exchange and completion. The government bonus contributes towards the overall cost of purchasing your home. 
  • Can only be held as a cash savings ISA
  • First home purchase price of £250,000 or less (£450,000 or less in London only).
  • Money can be used for first home purchase once you have £1,600 saved (3 months saving full allowance).
  • Government bonus can only be redeemed against the purchase of your first home.
  • No withdrawal charge should you decide to use the money saved for something other than the purchase of your first home. 

Not sure about transferring?

  • Vouchedfor.co.uk - Independent financial advice: If you’re not sure if transferring your Help to Buy ISA to a Lifetime ISA is right for you, it’s worth speaking to an independent financial adviser.
  • Money Saving Expert: Martin Lewis and Helen Saxon take a look in detail at the Lifetime ISA and Help to Buy ISA to attempt to give first-time buyers a comprehensive explanation of how both ISAs work.

Don't have a Help to Buy or Lifetime ISA yet?

Visit our product page to find out more about our OneFamily Lifetime ISA .

About our Lifetime ISA